Apple Inc. (NASDAQ:AAPL) Jumps To Over 3-Month High On Strong Expectations

The iPhone5 launch is the much awaited event as the
analysts estimate the launch to act as a catalyst to the Company’s slow period.
Apple’s slow period is described as the clearance period for the launch of
Apple’s new product. The new iPhone is going to have a thinner screen with the
feature of “In-Cell” touchscreen displays. The displays that are being
developed in Japan is expected to be shipped by August which lead to a
September ramp.

Apple has also agreed to acquire AuthenTec (NASDAQ:
AUTH) for $8 per share in an all cash deal which is expected to close in C3Q12.
The transaction values AuthenTec at approximately $340 million net of cash,
which implies a valuation of approximately 5x ttm revenues.

The acquisition allows Apple to purchase a $20
million option to review AuthenTec’s patent portfolio for a 270 day period and
purchase IP for up to $115 million. This might benefit Apple’s iPhone6 with the
integration of AuthenTec’s new fingerprint sensors (AES2750) that provide
authentication capabilities by fingerprint for both smartphones and tablets for
the purpose of protected and secure payments.